Efficient And Effective Business Litigation

Know how to defend against fraudulent misrepresentation claims

On Behalf of | Jun 11, 2021 | Firm News |

Your business, like most, wouldn’t be able to function without contracts. While the parties that enter into these agreements should be fully informed and voluntarily enter into them, the fact of the matter is that things don’t always go as planned after contracts are finalized. That’s why breach of contract disputes arise all the time.

But sometimes parties feel like they’ve been tricked into a contractual arrangement, meaning that they were wronged on the front end rather than after everyone has signed off on the agreement. If that’s the case, then you may find yourself on the receiving end of a fraudulent misrepresentation claim.

Defending against fraudulent misrepresentation

Before a plaintiff can succeed on a fraudulent misrepresentation claim, it has to prove certain legal elements. Of course, the plaintiff has to show that an actual representation was made and the representation was false, but it also has to demonstrate that you made that false representation intentionally and with the motivation to induce the other party to enter into the contractual arrangement.

Proving intent is hard for plaintiffs and is usually their biggest roadblock to a favorable judgment. You can strengthen that obstacle by carefully considering the context of the contract at the time it was created and agreed upon. Your internal communications and correspondences with outside parties may be helpful here, but so, too, can simple testimony of those involved. The key is to not get tangled up in the irrelevant details of your case. Instead, you need to stay focused on the elements of the law and how to prevent the other side from proving them.

Secure the legal help you need

It can be stressful to face a contractual dispute. After all, a judgment against you could leave your business on unsteady financial footing, and it may even affect you on a personal level. That’s why you need an ally on your side that understands the law and how to protect you from overzealous plaintiffs. Law firms like ours stand ready to assist in that capacity.